Commentary

D2.218 Group relief surrenders—current year capital allowances

Corporate tax
Corporate tax | Commentary

D2.218 Group relief surrenders—current year capital allowances

Corporate tax | Commentary

D2.218 Group relief surrenders—current year capital allowances

Capital allowances claimed by a trading company usually reduce a trading profit or augment a trading loss and are therefore taken into account in a claim to relieve trading losses (see D2.217).

However, excess capital allowances do arise for the purposes of group relief on plant and machinery used for special leasing (see B3.380)1. These allowances may either be:

  1.  

    •     deducted from the income for the current accounting period from any qualifying activity of special leasing of plant or machinery, or

  2.  

    •     surrendered insofar as they exceed the income from qualifying special leasing activities

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